§ 1000 Corporate Property Security Approval

Corporations Code·California

AI SummaryVerified

The corporation can use its property as security for contracts or obligations if the board approves it, and shareholders do not need to vote unless the articles specifically require it.

Key Takeaways

•The board can pledge any part of the corporation’s property as security.
•Shareholder approval is not required unless the articles of incorporation say it is.
•This applies to mortgages, deeds of trust, pledges, or other forms of security.

Example

A company wants to borrow money to expand its warehouse and offers the warehouse building as collateral.

The board can agree to pledge the warehouse as security for the loan, and the company does not need a shareholder vote to do this unless its governing documents say otherwise.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 1000 Corporate Property Security Approval

Any mortgage, deed of trust, pledge or other hypothecation of all or any part of the corporation’s property, real or personal, for the purpose of securing the payment or performance of any contract or obligation may be approved by the board. Unless the articles otherwise provide, no approval of shareholders (Section 153) or of the outstanding shares (Section 152) shall be necessary for such action. (Added by Stats. 1975, Ch. 682.)

Last verified: January 10, 2026

Key Terms

mortgage deed of trust pledge hypothecation board shareholders

References

Official text at leginfo.legislature.ca.gov
California Legislature. Corporations Code. Section 1000.

§ 1000 Corporate Property Security Approval

Corporations Code·California

AI SummaryVerified

§ 1000 Corporate Property Security Approval

The corporation can use its property as security for contracts or obligations if the board approves it, and shareholders do not need to vote unless the articles specifically require it.

Key Takeaways

•The board can pledge any part of the corporation’s property as security.
•Shareholder approval is not required unless the articles of incorporation say it is.
•This applies to mortgages, deeds of trust, pledges, or other forms of security.

Example

A company wants to borrow money to expand its warehouse and offers the warehouse building as collateral.

The board can agree to pledge the warehouse as security for the loan, and the company does not need a shareholder vote to do this unless its governing documents say otherwise.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 1000 Corporate Property Security Approval

Last verified: January 10, 2026

Key Terms

mortgage deed of trust pledge hypothecation board shareholders

References

Official text at leginfo.legislature.ca.gov
California Legislature. Corporations Code. Section 1000.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References